In the last year, numerous companies have begun to acquire Bitcoin voraciously. Metaplanet has transformed its business model, amassing the currency in its reserves. Now it plans to use it to buy cash-generating companies.
Metaplanet is a company listed on the Japanese Stock Exchange. Their history is one of changing approaches. It has been involved in finance, real estate, and trading, but originally started as a hotelier. In 2024, they began acquiring Bitcoin as a hedge against inflation. It is now using its extensive Bitcoin reserves to acquire businesses that generate cash. One of these possible purchases could be a bank based in Japan.
Metaplanet’s Bitcoin Store
Metaplanet is currently the largest corporate holder of Bitcoin outside North America. It holds an estimated 15,555 BTC. Metaplanet themself have said it is aiming to acquire 210,000 BTC by 2027, equating to 1% of all the Bitcoin in existence.
The current Bitcoin price is trading at $109,132. It has repeatedly tested the $110,000 barrier over the past week but failed to break it. This could signal a further run past the $111,000 record established in March if it does. This would be the ideal scenario for these companies; however, it will inevitably result in a strong pushback before settling at a lower price.
CEO of Metaplanet Simon Gerovich told the Financial Times outlet that they think of Bitcoin as a gold rush, adding, “We need to accumulate as much Bitcoin as we can… to get to a point where we’ve reached escape velocity and it just makes it very difficult for others to catch up.”
Metaplanet’s Phase 2
This period is being named “Phase 2” by the company. This is where it will use its coin to acquire cash-generating companies. Buying 2,205 BTC this month alone, the company added that their phase one will take around four to six years. After this, it will be increasingly difficult to get Bitcoin due to tightening availability.
Gerovich also ruled out issuing convertible debt to raise funds. There have been many voices that have warned against this in the current corporate gold rush for Bitcoin. This has, in some cases, seriously reduced many companies’ NAV. He added, “I don’t want to have to pay back the money in three, four years’ time and have linked to an arbitrary share price,” he said.
The company has seen its share prices rise by 345% this year alone. Their market cap has also moved to $7 billion. It is a strategy that many companies are aiming to mimic, despite the company having very little to give in terms of revenue. Many are hoping to emulate not just Metaplanet but also Michael Saylor’s organization’s Strategy. This company turned from a software company to one focused on Bitcoin acquisition, sending its share prices skyrocketing.
Another option for them is crypto-backed lending. This is rare, but there are institutions beginning to explore it. Some major exchanges have begun to test pilot schemes, in which they let people use cryptocurrencies as collateral.
Corporate Bitcoin Acquisitions
Alarm bells are being sounded regarding this gold rush to acquire Bitcoin in the corporate world. It is not just large companies that are doing this, either. Across the globe, smaller companies are gaining holdings. An example is the Genius Group, a Singapore-based educational technology company. They have recently moved their Bitcoin holdings from 1,000 to 10,000 BTC.
What is worrying is how companies are buying this. While some are converting existing cash assets, others are selling stock. The aforementioned Genius Group, for example, plans to use this method alongside Bitcoin yield returns and revenue streams.
A recent report by venture capital firm Breed should be heeded as a warning to Bitcoin treasury companies. It stated that the majority of companies now acquiring Bitcoin are on the brink of collapse. If Bitcoin’s price drops, it can impact their Net Asset Value Multiple (MNAV). This reduces the value of shares, which is increased if more shares have been created to buy the Bitcoin originally. This leads to a reduction in funding and increased market pressure.
This can then lead to a deadly spiral. With shares that are reduced in value, companies cannot raise new capital, and without that, they cannot grow or expand, nor attract new customers and investors. When credit needs to be paid, any sales of Bitcoin to fund this can spook the markets, lowering Bitcoin’s price and causing more sell-offs.
The report did, however, highlight many companies that would be able to withstand market changes. These are ones that have acquired Bitcoin carefully, using it to bolster their company’s position as opposed to a last-ditch attempt to save it. Generally, these companies have struck a balance between their share value and Bitcoin. Many also have diversified portfolios.
Metaplanet is one of the globe’s foremost Bitcoin treasury holders. While time will tell if their approach pays off, only one thing is for sure: This corporate takeover is resulting in a scarcity of Bitcoin on the open market. This alone should hold its value and show that long-term investment is a prudent move.
